US TSY FUTURES: Post-Data Support Short Lived
Fast two-way trade as Tsy futures reverse course, extend early session lows, curves remain flat with short end discounting the disinflationary metrics. Rate hike projections into year end firm slightly, December cumulative running 23.5bp (31.7bp on Wed) at 5.308%.
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GBPUSD TECHS: Approaching Key Resistance
- RES 4: 1.2877 High Apr 25 2022
- RES 3: 1.2772 High Apr 26 2022
- RES 2: 1.2759 61.8% of the Jun - Sep bear leg
- RES 1:1.2680 High May 10 and the bull trigger
- PRICE: 1.2664 @ 13:40 BST Jun 14
- SUP 1: 1.2482/35 20- and 50-day EMA values
- SUP 2: 1.2369 Low Jun 5 and a key support
- SUP 3: 1.2308 Low May 25 and the bear trigger
- SUP 4: 1.2275 Low Apr 3
GBPUSD traded higher Tuesday to confirm an extension of the current bull cycle and the pair is rallying again today. Price has breached 1.2592, 76.4% of the May 10 - 25 downleg. This signals scope for a climb towards key resistance at 1.2680, the May 10 high. A break of this hurdle would confirm a resumption of the longer-term uptrend that started Sep 26 last year. Initial firm support has been defined at 1.2369, Jun 5 low. First support is 1.2482, the 20-day EMA.
US TSY FUTURES: Post-PPI Reaction
- Treasury futures extend rally after PPI comes out lower than expected (-0.3% vs. -0.1% est; YoY flat vs +1.5% est). Fast two-way trade immediately after the release, short end gains tractions, curves bull steepen: 2s10s +2.057 a t -83.660.
MNI: US MAY FINAL DEMAND PPI -0.3%, EX FOOD, ENERGY +0.2%
- MNI: US MAY FINAL DEMAND PPI -0.3%, EX FOOD, ENERGY +0.2%
- US MAY FINAL DEMAND PPI EX FOOD, ENERGY, TRADE SERVICES +0.0%
- US MAY FINAL DEMAND PPI Y/Y +1.1%, EX FOOD, ENERGY Y/Y +2.8%
- US MAY PPI: FOOD -1.3%; ENERGY -6.8%
- US MAY PPI: GOODS -1.6%; SERVICES +0.2%; TRADE SERVICES +1.0%
